Which One of the Following Statements Is Correct Concerning the Time

question 37

Multiple Choice

Which one of the following statements is correct concerning the time value of money?

• A) The future value of $1 at the end of two years is equal to $1.00(1+r)(1+r)
• B) As the interest rate increases for any given year, the future value interest factor will decrease.
• C) The future value of $1 decreases with the passage of time.
• D) The future value of $1.00 at the end of 2 years is $1.00+2($1.00 × r).

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Definitions:

Poverty Rate

The percentage of the population living below the poverty line defined by national or international standards.

Official Poverty Rate

A government-calculated statistic that measures the proportion of the population whose income falls below the threshold considered necessary to meet basic living needs.

Elderly Families

Families that consist predominantly of members who are of retirement age or older, often with specific medical, social, and financial needs.